Skaredykat Inc

question 86

Multiple Choice

Skaredykat Inc. is considering initial expansion beyond its home market. The firm has decided not to enter markets that differ greatly from its home market,instead expanding within the twelve-nation region that includes its home country.

• A)The firm is not engaging in international trade.
• B)The firm is using a regional approach to international expansion.
• C)The firm will not be able understand the cultures, legal, and social norms of this market.
• D)Skaredykat is a scaredy-cat.

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Definitions:

Terms Of Trade

How much of one good exchanges for a unit of another good.

Comparative Advantage

The ability of a country or entity to produce a particular good or service at a lower opportunity cost than others, leading to more efficient international trade.

World Output

The total value of goods and services produced across the globe within a specific time frame, often used to measure the economic performance of the global economy.

Self-Sufficient

Refers to an individual, household, or community that has the capacity to fulfill all its needs without external assistance.